2006-12-05 12:13:38 · 3 answers · asked by SS 2 in Business & Finance ➔ Taxes ➔ United States
No. There is no tax deduction of any kind for the purchase of a U. S. Savings Bond. Giving it to your child has no tax consequences either (unless it is more than $12,000 in which case you may have to file a gift tax return). If the bond is in your child's name, you could defer the taxes until the bond is cashed OR you could declare the interest each year. The latter is usually a better choice because unless your childs total interest in one year is more than $850 (starting in 2006), the child will not have to pay any tax on the interest. Either way, if the bond is cashed and (in the same year) it is used to pay for its owner's (in your case, your child's) post-secondary education (a.k.a. college / tech school), the interest is not taxed.
U.S. Savings bond interest is never taxed by your state.
2006-12-05 12:27:52 · answer #1 · answered by TaxMan 5 · 2⤊ 0⤋
No you can't take it off your income tax.
However, there are situations where you may be able to cash in your bond and avoid paying tax on the interest if you are using the money to pay for higher education.
2006-12-06 13:10:18 · answer #2 · answered by nova_queen_28 7 · 1⤊ 0⤋
No, you can't deduct it.
2006-12-05 21:42:07 · answer #3 · answered by Judy 7 · 0⤊ 0⤋